Effect of partner’s dissociation.

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486A.603 Effect of partner’s dissociation.

1. If a partner’s dissociation results in a dissolution and winding up of the partnership business, article 8 applies; otherwise, article 7 applies.

2. Upon a partner’s dissociation all of the following apply:

a. The partner’s right to participate in the management and conduct of the partnership business terminates, except as otherwise provided in section 486A.803.

b. The partner’s duty of loyalty under section 486A.404, subsection 2, paragraph “c”, terminates.

c. The partner’s duty of loyalty under section 486A.404, subsection 2, paragraphs “a” and “b”, and duty of care under section 486A.404, subsection 3, continue only with regard to matters arising and events occurring before the partner’s dissociation, unless the partner participates in winding up the partnership’s business pursuant to section 486A.803.

98 Acts, ch 1201, §32, 79, 82

Referred to in §486A.103


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